(1)  In calendar year 2003, the maximum charge payable for electrical services provided by the Hydro-Electric Corporation on King Island or Flinders Island, as described in the electricity price determination, is the price charged in calendar year 2002 for those services on that island multiplied by the prescribed inflationary factor.

(2)  Despite subclause (1) , in calendar year 2003, the maximum charge payable for energy on King Island or Flinders Island may be adjusted to take account of the effect of the difference between the diesel fuel price applicable in calendar year 2002 and that applicable in calendar year 2003.